Claypool Hardware is the only hardware store in a remote area of northern Minnesota. Some of Claypool's transactions during the current year are as follows. Nov.5 Sold lumber on account to Beaidji Construction, \$17,390. The inventory subsidiary ledger shows the cost of this merchandise was $11,585. Nov.9 Purchased tools on account fron Owatonna Tool Conpany, \$4,6ee. Dec. 5 Collected in cash the $17,390 account receivable fron Bemidji Construction. Dec.9 Paid the $4,6e0 owed to Owatonna Tool Company. Dec.31 Claypool's personnel counted the inventory on hand and deternined its cost to be $184,0e0. The accounting records, however, indicate inventory of $186,190 and a cost of goods sold of $671,296. The physical count of the inventory was observed by the company's auditors and is considered correct. Assume that an index of key business ratios in your library shows hardware stores of Claypool's approximate size (in total assets) average net sales of $1 miltion per year and a gross profit margin of 29 percent. Required: a. Prepare journal entries to record these transactions and events in the accounting records of Claypool Hardware. (The company uses a perpetual inventory system:) b. Prepare a partial income statement showing the company's gross profit for the year. (Net sales for the year amount to $1,048,900.) c. Claypool purchases merchandise inventory at the same wholesale prices as other hardware stores. Due to its remote location, however, the company must pay between $16,500 and $21,000 per year in extra transportation charges to recelve delivery of merchandise. (These additional charges are included in the amount shown as cost of goods sold.) d. Does the business appear to suffer or benefit financially from its remote location? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a partial income statement showing the company's gross profit for the year. (Net sales for the year amount to Claypool Hardware is the only hardware store in a remote area of northem Minnesota. Some of Claypool's transactions during the current year are as follows. Nov. 5 Sold tunber on account to Benidji Construction, 517,390.Theinventorysubsidiaryledgershowsthecostof this merchandise vas $11,585. Nov.9 Purchased tools on account fron Owatonna Tool Company, 54,6ee. Dec.5 Collected in cash the $17,390 account receivable from Benidji Construction. Dec.9 Paid the 4,6, 6 o ored to Owatonna Toot Company. Dec.31 claypool's personnel counted the inventory on hand and deterained its cost to be $184, eae. The accounting records, hovever, Indicate inventory of $186,190 and a cost of goods sold of $671,296. The physicat count of the inventory vas observed by the company's auditors and is considered correct. Assume that an index of key business ratios in your fibrary shows hardware stores of Claypool's approximate size (in total assets) average net sales of $1 million per year and a gross profit margin of 29 percent. Required: a. Prepare journal entries to record these transactions and events in the accounting records of Claypool Hardware. (The company uses a perpetual inventory system) b. Prepare a partial income statement showing the company's gross proft for the yeat. (Net sales for the year amount to $1,048,900. c. Claypool purchases merchandise inventory at the same wholesale prices as other hardware stores. Due to its remote location, however, the company must pay between $16,500 and $21,000 per year in extra transportation charges to recelve delivery of merchandise. (These addisional charges are included in the amount shown as cost of goods sold.) d. Does the business appear to suffer or benefit financially from its remote location? (8) Answer is not complete. Complete this question by entering your answers in the tabs below. Caypool purchoses merchandise inventory at the same wholesale prices as other hardware stores. Due to its remote location, howeve, the company must pay between $16,700 and $21,000 per year in extra transportation charges to receive delivery of merchandive. (These additional charfos are included in the amount shown as cost of goods sold.) (Round "Gross prefte rate" answers to the nearest whole percentage.)